Direct Debt 2025-26
₹10.08L
▲ Doubled in 5 years
Total Liabilities incl. PSU
₹13.18L
▲ ₹3.10L Cr PSU debt
Debt/GSDP Ratio
38.1%
▲ Was 27.5% in 2014-15
Debt Per Person
₹1.28L
▲ Was ₹33,400 in 2014-15
Interest Payments 2024-25
₹0.83L
▲ Was 18.6% in 2014-15
Contingent Liabilities
₹1.59L
CAG flagged under-reporting
Debt Doubled in 5 Years
TN's direct debt grew from ₹5.13L Cr (2020-21) to ₹10.08L Cr (2025-26) — a near-doubling in just 5 years. Including PSU and SPV borrowings, total obligations stand at ₹13.18L Cr. TVK White Paper attributes this to: revenue deficit funding, interest-on-interest compounding, PSU losses requiring government support, and off-budget borrowings that bypass FRBM limits.
TVK White Paper on State Finances, June 2026
Debt Stock — Direct vs Total Liabilities
Including PSU off-budget borrowings
Debt / GSDP Ratio
FRBM prudential guideline: 25%
Debt Per Capita — Burden on Every Citizen
Interest Burden — % of Revenue Receipts
Hidden Liabilities
Off-Budget Borrowings & Contingent Liabilities
Debt that doesn't appear in the official state budget but ultimately falls on the taxpayer
Off-Budget Borrowings
Borrowings routed through SPVs, PSUs, and other state entities that bypass the official FRBM fiscal deficit calculation. CAG flagged ₹1.49L Cr in off-budget borrowings in 2023-24 alone. Including these would push the effective fiscal deficit to ~6.8% of GSDP.
CAG Report on State Finances 2023-24
State Guarantees
TN has extended guarantees worth ₹1.59L Cr to PSUs (2023-24). These are "contingent liabilities" — they crystallise into real debt if the PSU defaults. With TANGEDCO accumulating ₹1.79L Cr in losses, the risk is significant. FRBM allows guarantees up to 80% of GSDP — TN is well below the ceiling but the quality of these guarantees (TANGEDCO, TNSTC) is concerning.
CAG Report on State Finances 2023-24
Contingent Liabilities Growth
State guarantees outstanding (₹ Crore)
Historical Data
Debt Profile — Year by Year
| Year | Direct Debt | PSU Debt | Total Liabilities | Debt % GSDP | Interest Paid | Interest % Revenue | Debt Per Capita (₹) |
|---|
Data Sources
TVK White Paper on State Finances, June 2026
RBI State Finances: A Study of Budgets
CAG Reports on State Finances of Tamil Nadu (Annual)
TN Finance Department Budget Documents
FRBM Act 2003 / TN Fiscal Responsibility Act 2003
* Approximate figures. Verify with original sources.